Gold and Silver prices witness historic crash

New Delhi, Apr 21 (UNI) After soaring to new highs, gold and silver prices witnessed a historical crash by shedding Rs 400 per 10 gm and Rs 4,000 per kg respectively at the local bullion market today.

Gold standard, at close, was quoted at Rs 9,300 per ten gms and silver at Rs 18,900 per kg as prices in the global market declined to 621.10 dollar an ounce for gold and 12.35 dollars for silver after yellow metal touched 645.75 dollars an ounce, the highest since November 1980.

Yesterday, gold prices in international markets had even nose-dived to 607.80 dollars an ounce and in the late evening trading in gold was quoted at Rs 8990 per 10 gms and silver at 17,500 per kg, leading gold dealers said.

''The physical buying is either negligible or very thin despite the on-going wedding season and jewellery demand has already fallen by more than 50 per cent after the unprecedented rise in gold prices.

The domestic market is driven mainly by speculators and stockists.

The current rising spree in bullion prices is purely due to futures trading which should be stopped. The genuine consumer and market is at a loss,'' said Mr S K Jain, a leading jeweller.

Market sources said buyers will now wait for the global rate to come down to 600 dollar an ounce mark, which was breached last week and considered as correction point.

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